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Professional Negligence and Breach of Contract in Construction
Professional negligence and breach of contract are the most common legal disputes in the construction industry.
If you’re one of the many construction professionals working on projects across British Columbia, a client can pursue these claims against you.
What’s the difference, and how do these claims work? What are your legal remedies to reduce damages?
Understanding Professional Negligence
Professional negligence happens when an industry professional fails to meet the standard of care in their field, and someone suffers damages as a result. Damages can mean physical injuries, property damages, or financial losses.
Four things have to be true for a professional negligence claim to be valid:
- The professional had a duty of care toward a client.
- That duty of care was breached.
- The client suffered damages because of the breach.
- The damages directly resulted from the breach.
Duty of Care and Substandard Work
Construction professionals, such as contractors, architects, engineers, project managers, and surveyors, owe their clients a “duty of care.” They’re expected to perform work to the standard of a competent professional in their area of expertise.
Substandard work makes you liable for professional negligence if a duty of care can be established. In this situation, the claim is said to be brought in tort, which is a separate area of law that allows people to seek civil damages for negligence.
Negligence vs Breach of Contract
Negligence and breach of contract both can arise from a failure to perform duties and responsibilities. So, how do they differ? The answer lies in the source of liability.
A breach of contract is a violation of the specific terms that define what one party must perform in exchange for payment. Such agreements also set forth the “ground rules” or remedies available to a party if they don’t comply.
Put simply, a breach is when one party does not fulfill their contractual obligations, allowing the non-defaulting party to make the following claims:
- Compensatory damages
- Liquidated damages (amount defined in the contract)
- Rescission (contract cancellation)
- Specific performance (forcing the completion of work)
- In rare cases, punitive damages (exemplary damages to punish the guilty party)
A contract isn’t necessary in professional negligence. However, it must be proven that a duty of care existed. In the absence of a contract, the court applies common law principles to determine the amount of compensation.
That said, it’s not uncommon for a professional to face both claims at the same time.
For the claimant, pursuing negligence and breach of contract together can maximize their chances of recovering damages. What they cannot do is recover twice for the same loss.
Contract Violations and Professional Standards
Breach of contract violations usually include:
- Failing to complete work according to the schedule
- Using non-approved or substandard materials
- Ignoring specifications
- Violating “pay when paid” or “pay if paid” clauses
Note: Common in payment disputes, “pay when paid” or “pay if paid” terms transfer the non-payment risk onto subcontractors.
A material breach is serious enough to result in contract termination and a lawsuit. It’s defined by a substantial failure to perform that deprives the innocent party of the very benefit they expected from the agreement.
A non-material breach involves minor issues that don’t jeopardize the project’s completion but still entitle the client to seek damages for any resulting losses.
To recap: the contract is a very specific manual of expectations for all parties involved. But what about the basis for professional standards?
Unlike contract terms, professional standards are broad and evolving. That’s why negligence claims often tap expert witnesses to help the court understand what a competent professional would have done in the same situation.
Common Issues in BC Projects
The construction sector is a primary contributor to BC’s economy. In fact, the province had over 1,000 construction projects worth at least C$15 million in the Q2 2025 inventory alone. With that much building activity, construction disputes are practically inevitable.
Design Errors, Supervision Failures, and Delays
These are recurring issues:
- Design Errors: Incorrect or incomplete designs are a major cause of project delays and costly re-work.
- Supervision Failures: Inadequate supervision compromises site safety and the quality of the build.
- Schedule Delays: Missed deadlines can trigger liquidated damages clauses.
- Defective Performance: Poor workmanship, code violations, or incomplete work are standard grounds for compensatory damages.
Limitation Periods in British Columbia
In BC, you can only file a construction claim within the limitation period. The time limits for civil lawsuits, including contract disputes, are set in the Limitation Act.
Two-Year Deadline Under the Limitation Act
Construction defects can sometimes stay hidden for years. Because of this, you have two years from the date you discovered the injury, loss, or property damage to start a legal proceeding.
Importance of Documentation
In any dispute involving contract enforcement, the paper trail is a powerful weapon. Clear documentation helps prove that you did your part of the deal or that delays were outside your control.
Contracts, Records, and Proof of Compliance
These documents can be used as evidence in negligence or breach of contract claims:
- Signed contracts and amendments
- Change orders
- Invoices and payment records
- Site reports
- Inspection reports
- Emails and texts
- Schedules and delay notices
Duty to Mitigate Losses
When a contract is broken or a negligent act is discovered, the injured party cannot simply sit tight and let the costs multiply.
Regardless of whether the other party is truly at fault, you’re legally required to try your hardest to keep the damages as low as possible.
If a court finds that you failed to take these steps, your final compensation may be reduced.
Reasonable Steps to Reduce Damages
To protect your right to full compensation, the law expects you to act practically. Examples include:
- Issuing a formal notice of defective performance to give the other party a fair chance to fix the issue
- Hiring a replacement contractor or temporary crew if the original team can’t or won’t finish the job
- Taking immediate action to prevent the damage from spreading (for example, patching a roof leak before it ruins the flooring)
How Harbourview Law Can Support You
Our lawyers at Harbourview Law bring a sophisticated understanding of construction law and the unique hurdles of developments across British Columbia.
With decades of experience resolving construction disputes, we provide strategic guidance tailored to your business goals. We can help you navigate the most effective path forward, whether that’s through negotiation, mediation, arbitration, or litigation. Contact us today for a consultation.
Breach of Contract in Construction
Why Choose Harbourview Law Group?
Bench Strength With Real-World Experience
We bring real-world business and construction experience to every case. We understand how legal challenges impact your project or operations, so our approach is focused on resolving issues quickly, efficiently, and with your bottom line in mind.
We Minimize Downtime
Disputes are an inevitable part of doing business, but they come at a high cost in time, money, and energy. Our goal is to resolve them as quickly as possible so you can get back to what matters most: running your business.
Building Long-Term Partnerships
We’re proud of our high client retention. Many of our clients come to us after experiencing frustration with prior representation. They come to us with cases that weren’t moving forward and legal bills that kept piling up. We take a different approach: proactive communication, steady progress, and lasting partnerships built on trust and results.